Roth IRA Calculator
Calculate how much your Roth IRA could grow over time with tax-free earnings. See the power of compound interest working for your retirement.
Why Start a Roth IRA?
A Roth IRA is one of the most popular retirement accounts because contributions are made with after-tax dollars, but qualified withdrawals in retirement are 100% tax-free. This means you don't pay taxes on the investment earnings that accumulate over decades.
Contribution Limits (2024)
For 2024, the total contribution limit for all your IRAs (Traditional and Roth) is $7,000 for those under age 50, and $8,000 for those age 50 and older. Note that there are income limits that may restrict your ability to contribute directly to a Roth IRA.
The Power of Compound Interest
The earlier you start, the more your money grows. Even small contributions in your 20s can grow to significant amounts by retirement age due to compound interest. This calculator helps you visualize that potential growth.
Frequently Asked Questions
When can I withdraw my money?
You can withdraw your contributions at any time, tax-free and penalty-free. However, withdrawing earnings usually requires you to be at least 59½ years old and have held the account for at least 5 years to avoid taxes and penalties.
Is a Roth IRA better than a Traditional IRA?
It depends on your tax situation. Generally, if you expect to be in a higher tax bracket in retirement, a Roth IRA is often better because you pay taxes now at a lower rate. If you expect a lower tax bracket in retirement, a Traditional IRA might be beneficial.